Forward Contracts

question 1

Multiple Choice

Forward contracts:

• A)trade in an open market.
• B)establish a price paid tomorrow for something today.
• C)offer delivery of a commodity by sellers in the future.
• D)are traded on OTC markets.

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Definitions:

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Learned Helplessness

A belief that nothing one does matters, derived from an experience of random or unpredictable reward and punishment, and theorized to be a basis of depression.

Stimulus-Response Associations

The concept in psychology that behavior is a reaction to environmental stimuli, where specific stimuli elicit specific responses.

John Watson

An American psychologist, regarded as one of the founders of behaviorism, emphasizing the importance of observable behavior over internal phenomena like thoughts and feelings.